Nationwide BS pulls out of interest-only market - Mortgages - News - Moneyfacts

News

Nationwide BS pulls out of interest-only market

Nationwide BS pulls out of interest-only market

Category: Mortgages

Updated: 05/10/2012
First Published: 05/10/2012

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Nationwide Building Society has confirmed it will no longer offer interest-only mortgages to new customers with effect from 11 October.

The news follows The Co-operative Bank's announcement in May that it will be pulling out of the interest-only market, whilst Santander, ING Direct, Leeds BS and Coventry BS have all reduced their maximum interest-only loan-to-values from 75% to 50%.

A spokesperson for Nationwide said: " We have decided that interest-only has become a niche product."

"We get few applications on an interest-only basis – less than 3 per cent – as borrowers want the certainty of a capital and interest mortgage. That is why we have decided to stop offering interest-only mortgages to new borrowers."

What Next?

Find the best mortgage rate - Compare best selling mortgages

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Goodbye to the Help to Buy Guarantee

On 31 December, phase two of the Help to Buy initiative will be withdrawn from the market. It’s certainly done wonders for the high loan-to-value sector, so we thought we’d take a closer look at the significance of the scheme and the effect it’s had.

Remortgaging bounces back

Remortgaging has been enjoying a welcome boost in recent months, despite September’s slight dip, with many homeowners capitalising on record low mortgage rates to boost their finances.

Bank of Mum and Dad holds the (house) key

The Bank of Mum and Dad is an important source of finance for many young adults, and it seems that they still hold the key – in more ways than one.
 
Close